Bankers’ Pay Guidelines Tightened by FSA

Bankers pay guidelines will soon be updated according to the FSA (Financial Services Authority). Included in the new rules are tighter restrictions on bonus payments and pension deals. The new guidelines will affect 2500 city firms.

Prior to these new guidelines being handed down, only the biggest bans were subject to FSA pay rules. Now, any bank with any number of employees can be included under the umbrella.

These charges will be enforced starting in October of this year.

Although implementing the new guidelines has been left up to individual EU members and their regulators, official agreement of the new rules came earlier this month within European Parliament. Their goal through this new funds management plan was to reduce risk taking within the firms.

The changes include paying at least 50 per cent of bonuses in shares and deferring at least 40 per cent of bonus payments over a three year period.

Contribute

Useful Links

About Us

FinanceNews.co.uk aims to become a one-stop shop for personal finance content, news and information in the UK. With news topics covering everything in the personal finance sector from bank accounts to credit cards, debt to savings, we have a dedicated team of authors and business people who aim to bring you the leading stories, information, reviews and comparisons from an independent and informative perspective. The Finance News Team